Vertical cavity surface emitting lasers (VCSELs) – one of the key technologies in the sector – experienced a considerable decline in demand because of slower than expected penetration of smartphone face identification functionality, leading to falls of 5-8%.

However, the World Gold Council believes this may be a temporary blip and expect recovery in the near term as major smartphone manufacturers use up over-supplied inventory.

The LED sector once again registered a drop in demand, with gold volumes 5-8% lower y-o-y.

The continuing transition to gold-free chip scale packaging (CSP) weighed on the numbers during Q3.

And further challenges are on the horizon, with the US-China trade dispute one of the most pressing.

Potentially, dozens of LED lighting products could be subject to increased export duties, and this may affect the entire supply chain.

The potential impact on gold demand is currently unknown but developments are being watched with interest.

The traditional technology hubs of Mainland China and Hong Kong, Japan and the US all registered growth in gold volumes in Q3, with 1.9%, 1.0% and 3.0% respectively.

Minor falls in demand were registered in Taiwan and Singapore, both relatively small players in the sector.